Correlation Between Shinhan Inverse and DataSolution
Can any of the company-specific risk be diversified away by investing in both Shinhan Inverse and DataSolution at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shinhan Inverse and DataSolution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan Inverse Silver and DataSolution, you can compare the effects of market volatilities on Shinhan Inverse and DataSolution and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shinhan Inverse with a short position of DataSolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Inverse and DataSolution.
Diversification Opportunities for Shinhan Inverse and DataSolution
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shinhan and DataSolution is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Inverse Silver and DataSolution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DataSolution and Shinhan Inverse is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shinhan Inverse Silver are associated (or correlated) with DataSolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DataSolution has no effect on the direction of Shinhan Inverse i.e., Shinhan Inverse and DataSolution go up and down completely randomly.
Pair Corralation between Shinhan Inverse and DataSolution
Assuming the 90 days trading horizon Shinhan Inverse is expected to generate 2.31 times less return on investment than DataSolution. But when comparing it to its historical volatility, Shinhan Inverse Silver is 1.74 times less risky than DataSolution. It trades about 0.16 of its potential returns per unit of risk. DataSolution is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 426,000 in DataSolution on September 2, 2024 and sell it today you would earn a total of 64,500 from holding DataSolution or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Inverse Silver vs. DataSolution
Performance |
| Timeline |
| Shinhan Inverse Silver |
| DataSolution |
Shinhan Inverse and DataSolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Inverse and DataSolution
The main advantage of trading using opposite Shinhan Inverse and DataSolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Inverse position performs unexpectedly, DataSolution can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DataSolution will offset losses from the drop in DataSolution's long position.| Shinhan Inverse vs. AptaBio Therapeutics | Shinhan Inverse vs. Daewoo SBI SPAC | Shinhan Inverse vs. Dream Security co | Shinhan Inverse vs. Microfriend |
| DataSolution vs. Samsung Electronics Co | DataSolution vs. Samsung Electronics Co | DataSolution vs. LG Energy Solution | DataSolution vs. SK Hynix |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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